Alumina refinery will require investments of Rs 500 Cr by co

Alumina refinery will require investments of Rs 500 Cr by co; gross margins of $ 5/mt in Bauxite sales: Ashapura Minechem

Chetan Shah, MD of Ashapura Minechem said that total export of bauxite from Maharashtra and Gujarat could exceed 5 million tonnes. The company needs Rs 500 crore for Alumina refinery in Gujarat. He feels that the company will be able to finance this type of equity via cash flow. There could be $ 5 to $ 6 per tonne gross margins on bauxite sales. The company could see a better FY11.

He further said that there will be 40% -50% improvement to FY10 revenues on YoY basis. If required, the promoter equity will be diluted, he added.

Ashapura Minechem is a leading bauxite exporter. The company will export bauxite from Gujarat mines. State government has altered the mineral policy, according to which, private players can export aluminum raw material. The company will receive more bauxite mines.

Ashapura Minechem management said that the company aims to sell 2 million tonnes of bauxite by fiscal end. Revenue target for year has been revised to Rs 450-500 crore.

The company is going to set up alumina refinery with an investment of Rs 4,200 crore in Maharashtra. The company has got MoU with state government. The refinery will include 0.15 m tonne aluminium smelter and 330 MW captive power plant.